Question

If there is unemployment in the economy, then we would be producing ______ the PPC.

Options

• Below

• Above

• On

• None of the above

Answer 1

If there is unemployment in the economy, then we would be producing below the PPC.

Explanation:

Unemployment means not all resources are fully utilised, so actual production lies below the PPC, i.e. at a point inside the PPC.